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I'll definitely be staying away.

Barcoo
I agree with you !! The problem for Rio isn't as great as it is for BHP.
Now that this proposal is on the table it will be very difficult for the SA Government to back away from it in one shape or form. They will be looking at other countries who have nationalised industries and got away with it. Notably the Arab states and the oil industries and non oil industries such as the Suez canal which was nationalised by Egypt way back. If they decided not to proceed with it then the opposition will have a field day and the man in the street, in his ignorance, will also run with whatever party promises to nationalise the most.
This will leave BHP in a difficult position. They won't be able to sell the assets at anywhere near the market valuation because, let's face it, who would want to buy. On the other hand if they stay they risk losing (according to the discussion paper) up to 50% of the assets.
If they enter into litigation they may win after, probably, some years only to find that the government will legislate against them anyway and override any court decision. Any one of the scenarios will spook the investor and, as I said previously, it may not cause the share price to fall but it may not rise as do others without the albatross of this little gem around its neck.
All in all a difficult situation and a company to stay away from until things are clarified.
Regards
Harmy
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